Property Valuation Calculator 2022

Calculate your House Valuation Online with the help of Property Valuation Calculator 2022


The Ultimate Guide to Property Valuation Calculation Methods
 

90% of millionaires became wealthy through real estate - Andrew Carnegie, Billionaire Industrialist of the 19th century.

The people making wealth through real estate know one super SKILL that makes them filthy rich.

They know how to calculate the value of a property so that they can buy and sell their properties at the right price to maximize their profits.

Do you know that 91% of real estate owners do not know how to calculate the value of their property? Are you one among them? Let’s find out.
 

Table of Contents

Importance of Property Valuation

Methods of Property Valuation

1. Sales Comparison Method

a. Understanding Sales Comparison Method

b. Factors affecting Sales Comparison Method

c. Calculative Example

d. Summary

2. Land and Building Method

a. Understand Land and Building Method

b. Factors affecting Land and Building Method

c. Calculative Example

d. Summary

3. Rental Method of Valuation

a. Understanding Rental Method

b. Rental Method for Residential Properties

c. Rental Method for Commercial Properties

d. Summary

Conclusion

Property Price Tables for Cities

FAQs
 

There are 3 methods to value a property.

1: Sales Comparison Method of Valuation

2: Land and Building Method of Valuation

3: Rental method of Valuation
 

Method 1: Sales Comparison Method (SCM)

Sales Comparison Method is a method of valuation that compares one property to comparables or similar properties sold in that area recently.

Understanding the Sales Comparison Method

The Sales Comparison Method helps a Home Buyer or Seller determine whether the property's price is fair and comparable to the market.

Real Estate Investors and Valuers use similar properties that were recently sold within a short distance of the subject property—usually in the same neighbourhood—that share similar characteristics as a comparison.

If the subject property lacks a given feature found in the comparable property, the price is adjusted downwards according to the value attributed to a given feature.

Consequently, if the property comes with a valuable feature not found in the comparable property, the value is adjusted upwards accordingly.

It is done until a final figure is arrived at after the comparison of at least three recently sold and similar properties.
 

The 5 factors to consider for Sales Comparison Method:

1. Location and Neighborhood

Location directly impacts the value of the property.

It's important to compare homes in the same neighbourhood rather than those found in another part of the city.

Factors considered include proximity to schools, nearby lakes, children's parks, how close they are to highways and hospitals etc.

2. Just Sold Properties

Recently Sold properties provide a guiding point for the value of the homes in the neighborhood.

Although the price may vary depending on the features of the subject property the recent sale transactions in the same neighborhood give us a good guiding point.

3. Size of the Property

The comparison should include comparing properties with the same no of bedrooms built on a similar size parcel of land.

4. Age/Condition

While using Sales Comparison method it is essential to compare properties with similar ages and conditions.

The Condition of the property may significantly impact the valuation.

For example, If there are 2 properties in the same society but one of them needs significant repairs, it can seriously affect its value.

5. Average Price per Square yard or Square foot

Once you have data of similar homes and it is compiled, take each of the home's sale prices and divide them by their square feet or square yards.

The result will give you the cost per square foot/yard based on the features in the sales comparison method.

Take the average cost per square foot/yard for all comparable properties and multiply that number by the square foot/yard of the home to be valued.

Sales Comparison methods are used in the valuation of Flats, Apartments, Shops, Offices, and Penthouse.

Calculative Example of Sales Comparison Method of Valuation

Imagines if Mr Rohan is looking to sell his 13-year-old 2 BHK Apartment in a Satellite Area, Ahmedabad of saying a Builtup area of 1350 sq. feet.

As per Sales Comparison Method, assuming the Average Price Per Square Foot for a 13-year-old apartment in a Satellite area, Ahmedabad is Rs 5000 per sq. foot.

Valuation of Property as per SCM = Average price per square feet x Builtup Area of property.

Property Value = 5000 x 1350 = Rs. 67,50,000/-

So, if you are a home buyer and want to purchase Rohan’s property in the Satellite area, Ahmedabad you know what price to offer to Rohan.

 

Summary:

You can check your property value for free using our Property Valuation Calculator.

Note: Cleardeals Property valuation calculator is valid for Ahmedabad, Gandhinagar, Vadodara and Surat City only. We will be adding data from other cities soon.
 

Method 2: Land and Building Method

Land and Building Method is a method of valuation that considers both the value of land and the cost of construction.

The land and Building method of valuation are used in valuing Bungalows, tenements, Rowhouses, Hospitals, Hotels etc.

It is used for real estate properties which include individual land and a constructed structure upon it.
 

Understanding the Land and Building Method of Valuation

The Land and Building method of valuation helps a Property Buyer or Seller determine the market value of properties like Bungalows, Hotels, hospitals etc.

In the Land and Building method, the value of land and building are assessed separately.
 

Value of Land: The value of land is calculated based on the comparative sales method we learned above.

In the case of calculating the land value, the price of the sale of the land parcels in recent times in the neighbourhood is studied.

Noting the unit rate fetched in those sale instances, adjustments are made for escalation due to the time gap between the date on which the sale of the instance property occurred and the date on which the valuation of the subject property is required.

Adjustment is also made for differences in other characteristics between the sale instance property and the subject property.

With the unit rate so modified, the value of the subject land is assessed.
 

The factors that may affect the value of land are

1) Use to which the plot of land can be put as per the local bye-laws.

Commercial Zone land parcels have a high value compared to Resident Zone land parcels in the same vicinity.

2) Shape, size, location etc. of the plot.

Shape: Square and Rectangle shape plots are best suited for architectural planning compared to triangle or odd shape plots, hence the former demand a higher value.

Size: If the plot size is too large it may fetch comparatively less unit rate than the medium or smaller plots due to less affordability of very big size plots.

Location: 2 road corner plots have a higher value than the single road entry plots. Similarly, Main road plots fetch higher value than internally located plots.

3) Social status of the colony in which the plot of land is located.

The value of the land in a neighbourhood is higher where the community has a higher per capita income.

4) Accessibility and proximity to the public transport system and other amenities.

The land parcels that are near public transport and other amenities like parks and lakes fetch a higher value.

Some other factors that may affect the land value are the Effect of local bye-laws and regulations, Demand for land,  Nature of holding, namely leasehold and or freehold, and Restrictions on the land, if any, on sale.
 

Cost of Building

The basic aim here is to estimate the cost of construction of the building structure on the date of valuation.

In other words, we can say estimating the replacement cost of the structure.

In working out the replacement cost, it has to be ensured that the cost is assessed for a structure of similar utility and not necessarily identical structure.

The replacement cost gives the amount which will be required for the construction of a building of similar utility.

The buildings depreciate as they become older. In order to give a correct assessment of the value of the structures, it is necessary to work out the depreciation that has set in due to the age of the building.

Different types of structures may have different costs of construction as per the type of structure and the materials used.

As of the year 2022, the cost of construction for a residential bungalow comes to around Rs. 1700 to Rs. 2000 per sq. feet.

Consider a building with a life of 80 years, if well maintained, the following table shows the depreciation with the age of the building:
Property Valuation Depreciation table


The final 10% is the scrap value on the dismantling at the end of the utility period.

Calculative Example of Land and Building method of Valuation

Imagine if Mr Mohit is looking to sell his 5-year-old 3 BHK Bungalow in Bopal Area, Ahmedabad.

The Bungalow has a plot/land area of 1800 sq. feet and a construction built-up area of say 2000 sq. feet.
 

Value of Land:

As per Sales Comparison Method, assuming the Average Price Per Square Foot for land in Bopal Area, Ahmedabad as Rs 6000 per sq. feet.

Valuation of Land as per SCM = Average price per square feet x Land Area of property.

Land Value = 6000 x 1800 = Rs. 1,08,00,000/-
 

Cost of Construction:

As of 2022, the approximate cost of construction of 1 sq. foot of the bungalow is Rs. 1700 to Rs. 2000 per sq. feet.

The construction built-up area of the above bungalow is assumed to be 2000 sq. feet.

Cost of construction = Builtup area x Cost of construction

Building Value = 2000 x 1700 = Rs. 34,00,000/-

Total Value as per Land and Building Method of the above property:

Cost of land + Cost of Construction

Rs 1,08,000 + Rs 34,00,000 = Rs. 1,42,00,000/-

So the total value of the Bungalow comes at around Rs. 1.42 Crores.

So, if you are a home buyer and want to purchase Mohit’s Bungalow in the Bopal area, Ahmedabad you know what price to offer to Mohit.

Note: The Cost of construction may vary depending upon the type of structure. For Hospitals and Hotels, the cost of construction will be high compared to the residential structure.
 

Summary of Land and Building method of Valuation

 You can check your property value for free using our Property Valuation Calculator.

Note: Cleardeals Property valuation calculator is valid for Ahmedabad, Gandhinagar, Vadodara and Surat City only. Will be adding data from other cities soon.
 

Method 3: Rental method of valuation

In this method, net rental income from the building is calculated by deducting all the outgoings from gross rent.

The year’s purchase (Y.P.) value is calculated by assuming a suitable rate of interest prevailing in the market.

Years purchase (Y.P.) is the amount that is yielded by the annual income of property; - used in expressing the value of a thing in the number of years required for its income to yield its purchase price, in reckoning the amount to be paid for annuities, etc.

The annual net rental income multiplied by the year’s purchase gives the capitalized value or the valuation of the property.

This method is used only when the rent is known or probable rent is determined by enquiries.
 

Rental method calculation for Residential Properties

For example, for residential properties in India we can consider a rate of interest as 3%, the Year’s Purchase = 100/3 = 33 years.

Assuming Mr Raju has a 2 BHK Apartment in the Navrangpura area of Ahmedabad fetching him a net annual rental income of say Rs 1,80,000/-

Then as per the rental method of valuation, the valuation of property = net annual rent x years purchase.

In this case the property valuation = 180000 x 33 = Rs. 59,40,000/-
 

Rental method calculation for Commercial Properties

For example, for commercial properties in India we can consider a rate of interest as 6%, the Year’s Purchase = 100/6 = 16 years.

Assuming Mr Virat has an Office in the Thaltej area of Ahmedabad fetching him a net annual rental income of say Rs 3,00,000/-

Then as per the rental method of valuation, the valuation of property = net annual rent x years purchase.

In this case the property valuation = 300000 x 16 = Rs. 48,00,000/-

You can observe that the Years purchase (Y.P.) in residential property is more than commercial properties.

Hence, for rental income people prefer investing in commercial properties over residential properties in India.
 

Summary of Rental method of Valuation:

You can check your property value for free using our Property Valuation Calculator.

Note: Cleardeals Property valuation calculator is valid for Ahmedabad, Gandhinagar, Vadodara and Surat City only. We will be adding data from other cities soon.

Conclusion

To make wealth through real estate it is necessary that you buy and sell the properties at the right price.

The 3 methods of property valuation as explained above will help you to know the right price of any property with some research on your part.

Try calculating the valuation of your own property with the help of the above methods and see at what value you arrive at. Is it the same as your expectations?

I hope the above article may have helped you to know the importance and methods of property valuation.

Have you tried any of the valuation methods before? What are other suggestions you would like to add for knowing the valuation of the property?

 

Property Rates in Ahmedabad, Gujarat

Latest Property Price for Flats and Apartments in Ahmedabad.

Sr. No Area Price (Min.) Rs./sq.ft Price (Max.) Rs./sq.ft
1 Adalaj 3200.00 3500.00
2 Airport Road/Circle 4000.00 5000.00
3 Ambawadi 5150.00 6500.00
4 Ambli 6300.00 8000.00


Property Rates in Gandhinagar, Gujarat

Latest Property Price for Flats and Apartments in Gandhinagar.

Sr. No Area Price (Min.) Rs./sq.ft Price (Max.) Rs./sq.ft
1 Chhatral 3500.00 4000.00
2 Dahegam 3000.00 3500.00
3 Gift City 5000.00 5500.00
4 Infocity 2500.00 3000.00


Property Rates in Vadodara, Gujarat

Latest Property Price for Flats and Apartments in Vadodara.

Sr. No Area Price (Min.) Rs./sq.ft Price (Max.) Rs./sq.ft
1 Ajwa Road 2150.00 3500.00
2 Akota 3600.00 8000.00
3 Alamgir 1600.00 1800.00
4 Alkapuri 4100.00 12500.00


Property Rates in Surat, Gujarat

Latest Property Price for Flats and Apartments in Surat.

Sr. No Area Price (Min.) Rs./sq.ft Price (Max.) Rs./sq.ft
1 Aanjada Nagar 2300.00 2650.00
2 Adajan 3200.00 4500.00
3 Althan 2800.00 3800.00
4 Amroli 1800.00 2500.00


Land Rates in Ahmedabad, Gujarat.

Sr. No Area Name Land Prices (Rs per sq.yard)
1 Airport Road 75000.00
2 Ambawadi 95000.00
3 Ambli 110000.00
4 Ambli-Bopal Road 140000.00

FAQ’s

Our Home Valuation report is accurate to a range of 90-95% as it considers many factors that affect house prices.

There may be some difference in house value based on factors like the age of the property, the floor of the property, interior conditions, etc.

The Property Valuation Calculator of Cleardeals is designed to help you check the right price for your house.

At Cleardeals.co.in we carry out extensive on-ground research to collect data on property transactions and embed them in our property value calculator. 

If you are looking to Sell your Property we recommend you market your property at the right price as it increases your chances of selling your property faster. 

You can calculate the property valuation by using Cleardeals Property Valuation Calculator and know the price of your house.

Currently, the Property Valuation Calculator is valid for cities like Ahmedabad, Gandhinagar, Vadodara, and Gujarat.

A property valuation is an estimation of your property's current price based on various factors like location, age, condition, and many other factors.

The property valuation report is needed for getting mortgage loans, for visa purposes, to check the income-generating potential of the property, and to sell or buy a property at the right price.

Yes absolutely. We want to help our users in knowing the right price for their property with help of our Property Valuation Calculator

You just have to enter the basic details of your house to get the approximate value of the property within a few seconds.

The results derived from property valuation calculators may vary up to 5-10%.

Cleardeals is the best real estate agent near you with experience selling properties worth 100�s+ crores at No Brokerages. Our average property time of sale is 45* days. We save an average of Rs 1.25* lacs on brokerage per property deal.

Yes. The Property Valuation Calculator is updated with the market rates of year 2022.

Every quarter we update the rates of  the property valuation calculator.

1. Comparable sales method of valuation

This method is generally used in carrying out the valuation of flats, offices, shops, and apartments.

The comparable sales method of valuation compares one property to nearby properties recently sold in that area that have similar characteristics.

Eg. If you have an apartment in a built-up area of say 200 sq. yards in the Maninagar area of Ahmedabad.

Assuming that a similar apartment in Maninagar is sold at a price of say Rs 40000 per sq. yard.

Then the valuation of our apartment in Maninagar will be equal to [built-up area of the apartment x price per sq. yard = 200 sq. yards x 40000 rupees per sq. yard = Rs 80,00,000/-]

 

2. Land and Building method of valuation

This method is generally used in calculating the valuation of individual houses or bungalows.

For Eg: If you have an individual house in the Satellite area of Ahmedabad with a plot area of 200 sq. yards and a construction built-up area of say 250 sq. yards. 

In the land and building method of valuation, we first calculate the price of the plot and then the price of construction.

Assuming the price of a plot per sq. yard in Satellite, Ahmedabad says Rs. 90000 per sq. yard.

The value of the plot will be Plot area x price per sq.yard, i.e. in our case it will be = 200 sq.yard x 90000 Rs per sq.yard = Rs 1,80,00,000/-

Similarly, we will calculate the cost of construction. The cost of construction remains almost the same.

Looking at current construction rates, we can assume the construction rate per sq. yard is Rs 15000 per sq. yard.

So in our case, the cost of construction will be 250 sq. yard x 15000 Rs per sq. yard = Rs 37,50,000/-

So, now adding the cost of land and cost of construction, we will get the total market value of our bungalow in satellite, Ahmedabad.

Property Valuation of Bunglow as per Land and Building method = Cost of plot + cost of construction i.e. Rs 1,80,00,000 + Rs 37,50,00,000 = Rs 2,17,50,000/-

Speak Your Mind

2 comment

Realtors 4 You

16 Nov 2020

Great blog. This blog is very informative and helpful. I really appreciate your work. Want to know more about real estate agent then visit realtors4you.ca

Cleardeals

Thanks


Naresh

26 Jun 2022

Very in-depth details on property valuation methods are covered in the article.

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